GMC stakes out new territory as a premium brand with the ★★★★ 2018 GMC Terrain Denali, a compact SUV trimmed and equipped to compete with the likes of the Acura RDX and Audi Q5.

The Terrain shares its architecture — code-named D2 — with the 2018 Chevrolet Equinox, but the days when GMC vehicles were just gussied-up Chevys are long gone. There’s no visual similarity from the outside, and the Terrain’s interior boasts luxury touches like real aluminum trim and intuitive new transmission controls.

The 2018 Terrain is about 3.5 inches shorter than last year’s model. Despite that, it has plenty of interior room, because the old Terrain was one of the biggest and heaviest compact SUVs. The 2018 Terrain is about 350 pounds lighter and considerably more fuel-efficient than its predecessor.

Prices for the 2018 Terrain start at $24,995 for a front-wheel-drive model with a 170-hp turbocharged 1.5L engine. All-wheel drive prices start at $29,570. From there, the ladder continues with a fuel-efficient and torquey 1.6L diesel at $31,590 for front-drive and $33,340 for AWD. The top drivetrain is a 252-hp turbo 2.0L gasoline four-cylinder that’s a $1,845 option in the Terrain SLT and standard in the top Denali model. All prices exclude destination charges.

A nine-speed automatic transmission is standard with gasoline engines. Diesel Terrains get a six-speed automatic. Both engines come with auto stop, which saves fuel by shutting off the engine briefly while idling.

My Terrain Denali’s price was several thousand dollars lower than most competitively equipped SUVs from more established luxury brands.

Disappointingly, the Denali does not offer adaptive cruise control, a very useful feature that’s common on well-equipped luxury vehicles, and increasingly on mass-market ones, too.

Competitive base prices (excluding destination charges)

(Automatic transmission, all-wheel-drive models)

GMC Terrain AWD Denali: $39,270

Acura RDX AWD w/advance package: $44,000

Alfa Romeo Stelvio Ti Sport: $43,995

Audi Q5 2.0 TFSI: $41,500

BMW X3 xDrive 28i: $42,050

Lexus NX 2.0t AWD F Sport: $37,785

Lincoln MKC 2.0 Reserve AWD: $42,055

Mercedes GLC 300 4Matic: $42,050

Source: Autotrader

Outstanding features

The interior is roomy, comfortable and quiet. Innovative new toggle controls for the transmission located on the center stack create more storage space in the center console, including handy side-by-side cup holders that will eliminate that relationship-testing moment when you accidentally gulp down your companion’s drink.

Electronic Precision Shift and Center Console.(Photo: General Motors)

GM calls the control its electronic precision shifter, and the name fits. The intuitive design quickly felt natural. That’s a refreshing change from other automakers’ attempts to reinvent the shifter, the worst of which have been linked to multiple accidents.

The Terrain has plenty of headroom, even with a big panoramic sunroof. The rear seat is comfortable on long drives.

The controls are simple and easy to use. They include a new version of GMC’s touch screen with improved graphics.

Like most GM vehicles, the Terrain has a user-friendly combination of dials, buttons, voice recognition and touch screen for navigation, audio and other features.

The exterior design is striking, from a bold octagonal grille to a seemingly floating roof created by blacked-out C-pillars and small rear side windows. Those narrow windows would make good gun slits, but visibility is surprisingly good. Still, I’d recommend getting blind spot and cross traffic alerts, optional features on most models.

The cargo area is large and accommodating. The front passenger seat folds flat to create eight feet of cargo space, or a work surface for laptops.

The downside

The infotainment system suffered a couple of intermittent glitches. Sometimes the dashboard and steering wheel controls didn’t work to advance or repeat tracks with Apple CarPlay.

The touch screen didn’t always respond in its non-CarPlay mode. The touch points lit up to show it registered my attempt to change settings, but nothing happened.

2018 All-New GMC Terrain Denali interior.(Photo: General Motors)

GMC won’t offer adaptive cruise control on the 2018 Terrain. Executives declined to explain the decision, but it’s reasonable to expect it in a future model year.

Between collision alert and low-speed automatic braking, the 2018 Terrain has many of the systems ACC requires. There’s no good reason to have left if off the launch model, leading me to conclude GMC wants a popular feature they can add easily a year from now. The other possible explanation is that GMC was worried the Terrain’s price was getting too high.

I doubt that. “Diffident” is not a word that comes to mind with the pricing of General Motors’ new SUVs.

Specifications as tested

Engine: 2.0L turbocharged 16-valve four-cylinder

Power: 252 hp @ 5,500 rpm; 260 lb-ft of torque @ 2,500-4,500 rpm

Transmission: 9-speed automatic

Wheelbase: 107.3 inches

Length: 182.3 inches

Width: 72.4 inches

Height: 65.4 inches

Curb Weight: 3,756 lbs.

Where assembled: San Luis Potosi, Mexico

Facts and figures

My Denali was fast, responsive and quiet in a long day of driving that included sidestepping construction zones in downtown Pittsburgh, twisty Pennsylvania hill roads, hours of highway driving followed by sitting in Detroit’s rush hour.

The 2.0L engine’s 252 hp and 260 lb-ft of torque are among the segment’s leaders. Only the Alfa Romeo Stelvio’s engine exceeds both, with the Terrain outdoing all other competitors on one or both. The 2.0L Terrain’s 3,500-pound towing capacity tops the competition.

The steering is responsive and quick. The transmission shifts fast and nearly imperceptibly. The Terrain’s handling is more than competent, but enthusiastic drivers will likely prefer the Stelvio, whose exhaust note and racy chassis are more likely to incite sporty driving.

GMC has elevated its luxury and sophistication, but has yet to add enthusiast appeal to its brand identity.

The Denali’s EPA fuel economy rating of 21 m.p.g. in the city, 26 on the highway and 23 combined essentially matches most competitors. The Q5’s 25 m.p.g. combined leads the class, while the MKC and RDX trail at 22. Everybody else rated 24 m.p.g., but because of the vagaries of the test cycle, the EPA estimates the same annual fuel cost for the 24-m.p.g. SUVs and the 23-m.p.g. 2.0L Terrain.

The Denali uses premium gasoline to achieve its rated fuel economy, as do all competitors except the MKC.

Terrains with the 1.6L diesel justifies their $3,770 price premium that comes with an EPA rating of 39 m.p.g. on the highway, a rating of 32 m.p.g. and a more than respectable 32 m.p.g. in the city. That combo should earn it a look from diesel fans who used to buy Volkswagen Tiguans, and hybrid owners who could use the diesel’s 1,500-pound towing capacity for outdoor activities.

I drove the 170-hp, 203 lb-ft 1.5L gasoline engine that powers the base Terrain on a short course that included a couple of steep hills. Most drivers will be perfectly happy with it.

GMC didn’t become General Motors’ second-largest brand by accident. Born as a provider of delivery trucks early in the 20th Century, it’s come to embody a compelling mix of ruggedness and sophistication. The 2018 Terrain Denali’s new vision of GMC styling, comfort, value and features will bolster that reputation.